NZDUSD briefly edged above 0.62 this week. In the view of economists at ANZ Bank, the Kiwi has already seen the lows.

USD’s safe haven premium to unwind 

“While we are a touch cautious that US interest rates have gotten ahead of themselves, it is not just market expectations that the US policy cycle may be nearing a turn that is weighing on the USD.” 

“We have also upgraded our China growth outlook (which should be good for commodities), and expect some of the USD’s safe haven premium to unwind following the Biden-Xi meeting in Bali, and as Europe copes with energy issues.”

“That all makes us more comfortable believing that we have likely seen the lows in the NZD.”